Is There a Fee to Cancel Allstate Insurance?
Last Updated on October 16, 2020
So you want to cancel your Allstate auto insurance policy, but you’re worried about a cancellation fee. Is there a fee to cancel Allstate auto insurance?
Allstate, like most insurance companies in the United States, does not typically charge cancellation fees. In fact, the company generally offers a prorated refund on your auto insurance policy. Depending on state law, Allstate may charge a cancellation fee, although most drivers never pay a fee to cancel their Allstate auto insurance.
Today, we’re explaining everything you need to know about Allstate insurance cancellation fees.
Cancel Anytime Without Paying a Fee
Allstate generally does not charge a cancellation fee. However, some states have unique insurance laws, and Allstate could charge a small fee in certain situations.
Like most insurance companies, Allstate lets drivers cancel at any time without paying a fee (in most situations). You can cancel your policy without proving you have new coverage.
However, if you continue to drive your car after canceling your Allstate auto insurance policy, then your insurance has lapsed, and you are not legally covered. You could face fines or penalties. If you cause an accident while your insurance has lapsed, then you need to pay for it out of pocket.
It’s Allstate’s policy to allow drivers to cancel any time without proving you have new coverage. If you’re unsatisfied with Allstate or found cheaper car insurance elsewhere, then you’re allowed to easily cancel your Allstate auto insurance policy.
How to Cancel Allstate Auto Insurance
Generally, canceling your Allstate auto insurance policy is as easy as calling the company and canceling. Talk to an Allstate agent, and that agent will walk you through the cancellation process.
In some cases, the Allstate agent may ask for a written request to cancel.
You cannot cancel Allstate auto insurance online through the official website. The company does have a cancellation page, however, explaining how to cancel your policy and how cancellation works. The company asks you to call your Allstate insurance agent, and you may need to submit a written request to cancel your policy.
When to Cancel Allstate Auto Insurance
You can cancel Allstate auto insurance any time – even in the middle of your policy. If you are unsatisfied with Allstate or found cheaper rates elsewhere, then you’re allowed to cancel your policy whenever you like without penalty.
Many drivers cancel Allstate auto insurance on a renewal date. If your policy is set to expire and you’ve been shopping around, for example, then you might cancel your Allstate auto insurance policy and block the renewal, then switch to your new insurance provider.
Typically, canceling on a renewal date is easier because you don’t have to pay for overlapping coverage or worry about a lapse in coverage. Many drivers also shop around during this period, making it a good time to switch providers.
You can find your renewal date by logging into your Allstate account online, checking your policy, or contacting your Allstate agent.
Getting a Refund on Unused Premiums
If you cancel your Allstate auto insurance policy in the middle of your policy, then you could receive a refund on unused premiums.
If you cancel your Allstate policy on March 15, for example, and have already paid for coverage up to March 31, then you may receive a pro-rated refund based on your unused insurance coverage. You paid for auto insurance up to March 31 that you will not use, so Allstate gives a refund.
Refund processes vary depending on state insurance law. Some states require insurers to provide pro-rated refunds, while others do not. Some states allow insurers to charge a cancellation fee, while others do not.
How to Avoid a Lapse in Coverage
If you are canceling your Allstate auto insurance policy because you no longer plan to drive, then you don’t need a new insurance policy. Maybe you sold your car, for example, or plan to use public transit.
However, if you plan to continue driving after canceling your Allstate auto insurance policy, then you need to buy new car insurance coverage. Otherwise, your coverage could lapse. You could be driving illegally without insurance and face fines and penalties. If you cause an accident without valid insurance coverage, then you need to pay for the costs of that accident out of pocket.
To avoid a lapse in coverage, buy a new auto insurance policy after you cancel your Allstate coverage. Make sure the new policy starts on the same day your old policy is canceled.
If you cancel your old car insurance policy on March 15, for example, then your new insurance policy needs to begin on March 15 to avoid a lapse in coverage.
Typically, car insurance policies expire at 12:01 AM on the date of cancellation. Some drivers start a new policy the next day (say, March 16), leaving them fully uninsured for one day. Make sure your new policy starts on the same date your old policy ends to avoid a lapse in coverage.
Take Advantage of Allstate Discounts and Bonuses
When you call your Allstate insurance agent to cancel, the agent may offer discounts or other bonuses.
Allstate wants to keep your business, and they may reduce premiums, find new discounts, or bundle extra coverage with your policy to retain you as a customer.
If you’re unsatisfied with Allstate or found cheaper insurance elsewhere, then make the switch. However, Allstate may be willing to match your new policy to keep you as a customer.
Some drivers call their insurance company regularly to cancel, then listen to their insurance company’s best offer.
Final Word on Canceling Allstate Insurance
You can cancel your Allstate auto insurance policy online without a cancellation fee. Most drivers will not pay a cancellation fee with Allstate, although cancellation fee policies vary based on state law.
Allstate lets drivers cancel a policy at any time, and most drivers can receive a pro-rated refund for any unused insurance premiums.
To cancel your Allstate auto insurance policy without paying a cancellation fee, contact your Allstate agent today.